Chapter 7 and Chapter 13 are two forms of personal bankruptcy available to individuals who have debt that has gotten out of control. If you are far behind on your mortgage payments, suffered a major illness and have medical bills piling up, don't know how you are going to pay your tax bill, or have consumer credit cards with balances that cause sleeplessness - bankruptcy may be the best option to get relief from your debt and get you on your way to a fresh financial start.

The knowledgeable bankruptcy lawyers at Stoesz & Stoesz, located near Noblesville, Indiana, can give you information to help you decide if bankruptcy is the best option for your circumstances. We will then handle all the paperwork and filing so that you can concentrate on moving forward into a more positive financial future.

Bankruptcy 101: Chapter 7 Versus Chapter 13

Whether you are eligible for Chapter 7 or Chapter 13 bankruptcy depends first of all on your income. Individuals with higher income may not qualify for Chapter 13 bankruptcy. People with lower incomes may qualify for Chapter 7 but may still choose to file for bankruptcy under Chapter 13.

Chapter 7 bankruptcy discharges unsecured debt. A house with a mortgage and a car with a loan may need to be turned over, although you may be able to keep possession if you can continue to make on-time monthly payments. Under Chapter 13 bankruptcy, which is also called a "wage earner" plan, both unsecured debt and secured debt (like a mortgage or car loan) are reorganized into a five-year payment plan, after which time any remaining debt is set aside.

Can I Keep My House?

One of the biggest bankruptcy myths is that you will definitely lose your house if you declare bankruptcy. Even if you are behind on your mortgage payments, Chapter 13 bankruptcy may be an excellent vehicle to save your house from foreclosure or to stop a sheriff's sale. Even if you have a low income and qualify for Chapter 7 bankruptcy, you may choose to pursue bankruptcy under Chapter 13 so that you can keep your home.

Contact Stoesz & Stoesz for Experienced Bankruptcy Help Today

The attorneys at Stoesz & Stoesz have more than 20 years of experience guiding central Indiana residents through the personal bankruptcy process. We offer free initial consultations, which are always confidential, and immediate appointments are available. To get started with your bankruptcy filing, call 317-867-1524 today or send us an e-mail.

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